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A BILL TO BE ENTITLED
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AN ACT
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relating to a pilot program to increase the financial independence |
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of foster children who are transitioning to independent living. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 264, Family Code, is |
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amended by adding Section 264.1215 to read as follows: |
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Sec. 264.1215. PILOT PROGRAM FOR FINANCIAL TRANSITIONAL |
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LIVING SERVICES. (a) The department shall establish a pilot |
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program to assist foster children to achieve financial security and |
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independence as the children transition to independent living. |
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(b) Notwithstanding Section 34.305(c), Finance Code, the |
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department shall enter into an agreement with a credit union or |
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other financial institution to establish savings and checking |
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accounts for foster children who, under an agreement with the |
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department and credit union or other financial institution, |
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participate in the pilot program. The agreement may include, as |
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appropriate, the following terms: |
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(1) a requirement that the department and the credit |
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union or other financial institution together encourage the foster |
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children participating in the program to open or continue private |
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savings and checking accounts once the participants are no longer |
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eligible for foster care services; |
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(2) procedures to transfer ownership and control of |
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the account to the participants exiting the program who are no |
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longer eligible for foster care services; |
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(3) safeguards to prevent overdraft fees or any other |
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fees that the foster child may incur; |
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(4) options to make financial coaching or mentoring |
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available to foster children participating in the pilot program; |
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and |
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(5) the age a foster child may participate in the pilot |
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program without a co-signor. |
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(c) The department may seek to partner with a person, |
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including a foundation, to match the amounts of money deposited |
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into the foster children savings and checking accounts under the |
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pilot program. The matching funds must be deposited directly into |
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the child's savings or checking account. |
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(d) The department and the person selected as a partner |
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under Subsection (c) may jointly establish incentives to provide |
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financial rewards to foster children for actions performed by the |
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children, including college visits or attendance at financial |
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education classes. The financial rewards may only be paid by the |
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person and are not available for matching funds provided under |
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Subsection (c). |
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(e) Money that may be deposited in a foster child's savings |
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and checking account established under the pilot program includes: |
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(1) money earned by the child through employment or |
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allowance; |
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(2) gift money; |
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(3) money deposited by the child's foster parent or by |
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a parent or other relative of the child; |
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(4) money received from the person selected as a |
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partner under Subsection (c) as financial incentives or matching |
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funds; and |
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(5) other money authorized under the department's |
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agreement with the credit union or other financial institution. |
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(f) The department shall survey each foster child who enters |
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and exits the pilot program. The survey must be designed to assess |
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any changes in the child's attitudes, perceptions, and knowledge |
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about financial matters from the time the child entered the program |
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until the child exited the program. |
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(g) The department shall complete an evaluation of the pilot |
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program not later than December 31, 2026. |
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(h) The department shall submit a report on the evaluation |
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of the pilot program conducted under Subsection (g) to the |
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governor, lieutenant governor, and speaker of the house of |
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representatives as soon as the evaluation is complete but not later |
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than December 31, 2026. |
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(i) A foster child may not be denied the rights granted |
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under Section 264.0111 to control money earned by the child that is |
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deposited into a savings or checking account under the pilot |
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program. |
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(j) If the department is unable to enter into an agreement |
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with a credit union or other financial institution, the department |
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shall include in the report required under Subsection (h) a |
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description of any legal or practical barriers that must be |
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addressed to ensure foster children are able to participate in the |
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pilot program and establish savings and checking accounts before |
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the foster children are no longer eligible for foster care |
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services. |
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(k) This section expires December 31, 2030. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the Department of Family and Protective Services shall |
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establish the pilot program as required by Section 264.1215, Family |
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Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |